When debt becomes unmanageable, bankruptcy can offer a fresh start — but choosing between Chapter 7 and Chapter 13 depends on your income, assets, and goals. Here is a plain-English comparison for Californians.
Chapter 7: liquidation / fresh start
Chapter 7 wipes out most unsecured debts — credit cards, medical bills, personal loans — usually in about 3–4 months. To qualify you must pass a means test based on your income compared to California’s median. California’s generous exemptions often let filers keep their home, car, and personal property.
Chapter 13: reorganization / repayment plan
Chapter 13 sets up a 3–5 year repayment plan based on what you can afford. It is a good fit if you earn too much for Chapter 7, are behind on a mortgage and want to catch up, or have assets you want to protect. At the end, remaining qualifying debts are discharged.
Which should you choose?
Generally: Chapter 7 if your income is below the median and you want the fastest fresh start; Chapter 13 if you have steady income, want to keep property, or need to cure mortgage arrears. The means test often decides eligibility for you.
What filing involves
Both chapters require a detailed petition with schedules of assets, debts, income, and expenses, plus a credit-counseling certificate. Accuracy matters — errors and omissions can delay or jeopardize your case.
How Curbside Legal helps
We prepare your bankruptcy petition and full schedules — court-ready and carefully organized — so you can file with confidence at a fraction of attorney cost. See pricing or start your intake.
Curbside Legal is a legal document preparation service, not a law firm, and does not provide legal advice. Court filing fees are separate.